Comment: Despite small GDP increase lenders should focus on increasing collections staff

Following the GDP figures this morning which showed an increase of just 0.4% on the month, Richard Pike, Sales & Marketing Director at Phoebus Software says, “Although the Chancellor has been upbeat about the figure, a 0.4% rise in GDP in October is behind some analyst predictions and shows the economy is still struggling to recover in a period of COVID restrictions. On this basis, we are unlikely see much of an improvement in November, and of course, what affect a potentially subdued Christmas retail boom will have on Decembers figures.

“For our industry, from an originations perspective the stamp duty deadline will keep stimulating the market in the short-term and the figures will probably indicate little effect. However, continued economic downward pressure will adversely affect important areas such as unemployment and therefore lenders and servicers should be focussing on increasing staffing levels in areas such as collections departments early in Q1 to be ready for an upturn in arrears later in 2021.”